16 Aug

Will US Crude Oil and Gasoline Inventories Support Oil Prices?

WRITTEN BY Gordon Kristopher FEATURED IN Commodities

Crude oil futures  

September WTI (West Texas Intermediate) crude oil (OIH) (SCO) (DIG) futures contracts rose 0.5% to $47.81 per barrel in electronic trading at 1:50 AM EST on August 16, 2017. Prices rose due to the massive fall in US crude oil inventories, according to the API’s (American Petroleum Institute) report. For more, read the previous part of this series.

US crude oil prices are down 16% year-to-date. Lower crude oil prices have a negative impact on oil and gas producers such as Comstock Resources (CRK), Northern Oil & Gas (NOG), and Triangle Petroleum (TPLM).

Will US Crude Oil and Gasoline Inventories Support Oil Prices?

Cushing crude oil inventories  

On August 15, 2017, the API (American Petroleum Institute) released its weekly crude oil inventory report. It reported that Cushing crude oil inventories rose by 1.7 MMbbls (million barrels) between August 4 and August 11, 2017. Cushing is the largest crude oil storage hub in the US. A rise in inventories at Cushing could pressure crude (XLE) (XOP) oil prices.

Gasoline and distillate inventories  

The API reported that US gasoline inventories rose by 301,000 barrels between August 4 and August 11, 2017. However, market surveys had estimated that US gasoline inventories would fall by 1.1 MMbbls during this period.

The API also estimated that US distillate inventories would fall by 2.1 MMbbls (million barrels) between August 4 and August 11, 2017. A market survey estimated that distillate inventories fell by 572,000 barrels during the same period.

EIA crude oil inventory report  

The EIA (U.S. Energy Information Administration) is scheduled to release its weekly crude oil inventory report on August 16, 2017, at 10:30 AM EST. A market survey estimated that US crude oil inventories would fall by 3.1 MMbbls between August 4 and August 11, 2017.


US crude oil inventories are below their five-year range and have fallen 11.3% from their peak. A higher-than-expected fall in crude oil, gasoline, and distillate inventories could support oil, gasoline, and diesel prices. Moves in crude oil prices impact oil producers like Northern Oil & Gas and Triangle Petroleum.

In the next part, we’ll analyze how US gasoline demand impacts oil prices.

Latest articles

18 Mar

Tilray Reports Its Fourth-Quarter Earnings


Tilray (TLRY) reported its quarterly earnings after the market closed. The company reported a total quarterly sales of $15.5, which increased nearly 203.8% year-over-year.

Earlier today, US tech giant Apple (AAPL) launched new versions of its iPad Air and iPad Mini. The company is set to hold a special event on March 25.

18 Mar

How Facebook Aims to Compete with Twitch


Facebook has stated that over 700 million of its users play games, watch gaming videos, and engage in gaming groups on its platform.

On March 18, President Trump tweeted, “GDP growth during the four quarters of 2018 was the fastest since 2005.” Let’s look at the data.

Today, Steel Dynamics released its first-quarter earnings guidance. It expects its first-quarter EPS to be between $0.88 and $0.92.

18 Mar

Why Amazon Is Interested in YES Network


Amazon (AMZN) recently teamed up with the Yankees and other investors to purchase the YES Network.